Advocacy in Action: United We Stand—The Imperative for Credit Unions to Protect Their Future

The credit union movement is at a pivotal juncture. Threats to our tax-exempt status, proposals to extend the Community Reinvestment Act (CRA) to credit unions, and challenges to the independence of our regulatory framework strike at the core of our mission. These are not mere policy debates; they are existential threats that could undermine our capacity to serve military members, veterans, and the broader communities that rely on us.

DCUC recognizes the urgency of this moment. Safeguarding our tax status, opposing unwarranted CRA expansion, reforming the CFPB, and preserving a strong, independent National Credit Union Administration (NCUA) requires a unified, strategic, and well-resourced response. As the trusted advocate for defense and veterans’ credit unions, DCUC is uniquely equipped to lead this effort. With decades of advocacy experience, robust relationships with policymakers, and a commitment to proactive, transparent action, we are prepared to defend the credit union mission.

However, this endeavor requires collective action. Credit unions nationwide must collaborate, pooling resources to uphold the shared values that define us. Our 2025 Advocacy Agenda offers a comprehensive strategy to address immediate threats and ensure the long-term sustainability of the credit union movement. Together, we can affirm that credit unions remain the trusted financial partners for millions of Americans.

DCUC’s 2025 Advocacy Agenda: Safeguarding Credit Unions and Their Mission
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DCUC’s 2025 Advocacy Agenda outlines a strategic approach to tackle the most pressing challenges and opportunities facing credit unions. From countering detrimental legislation to promoting policies that enhance our service capabilities, this agenda is dedicated to protecting the credit union movement while fostering financial readiness and stability.

Protecting Credit Unions’ Tax-Exempt Status

• Significance: The tax exemption for credit unions is rooted in their not-for-profit structure and member-focused mission. Revoking this status would lead to increased costs for members, diminished access to affordable financial services, and a reduced community impact.
• Strategy:
  • Educate legislators on the invaluable contributions of credit unions to their communities, especially underserved populations and military families.
  • Commission studies to illustrate the adverse economic consequences of taxing credit unions.
  • Mobilize grassroots advocacy to showcase the direct benefits members receive from the tax exemption.

Preserving a Strong and Independent NCUA

• Significance: The National Credit Union Administration (NCUA) serves as a vital, independent regulator, ensuring the stability and growth of the credit union industry. Attempts to compromise its independence—whether through external political pressure or unnecessary oversight—threaten the NCUA’s ability to act in the best interests of credit unions and their members.
• Strategy:
  • Advocate for policies that protect the NCUA’s independence and prevent external interference.
  • Work with the NCUA to ensure balanced rulemaking that accounts for credit unions’ unique structure and mission.
  • Oppose legislative proposals that undermine the NCUA’s autonomy or increase its budget without clear justification.

Reforming the CFPB

• Significance: The Defense Credit Union Council (DCUC) has actively engaged with the Consumer Financial Protection Bureau (CFPB) to advocate for reforms that consider the unique needs of defense credit unions and their members. Key initiatives include:

1. Opposition to Section 1033 Implementation: In October 2024, DCUC expressed significant concerns regarding the CFPB’s finalized implementation of Section 1033 of the Dodd-Frank Act. While acknowledging the intent to enhance consumer control over financial data, DCUC highlighted potential detrimental implications for credit unions, emphasizing the need for careful consideration of these institutions’ operational realities.
2. Support for the CFPB Accountability Act: In June 2024, DCUC endorsed the CFPB Accountability Act, championed by congressional leaders such as Senator Tim Scott (R-SC) and Senator Bill Hagerty (R-TN). This legislation aims to increase the CFPB’s accountability, aligning with DCUC’s commitment to ensuring that regulatory frameworks are transparent and consider the interests of defense credit unions.

• Strategy: Advocacy Reimagined Initiative Continued: In September 2024, DCUC launched the “Advocacy Reimagined” initiative, expanding its efforts to represent defense credit unions’ interests more robustly. We will continue this initiative focuses on deepening relationships with federal agencies, including the CFPB, to ensure that new rules and regulations account for the specific needs of defense credit unions. Through these actions, DCUC continues to advocate for reforms within the CFPB that support the operational effectiveness of defense credit unions and the financial well-being of their members.

Opposing CRA Expansion to Credit Unions

• Significance: The CRA was established to address discriminatory practices in for-profit banks. Credit unions inherently fulfill the CRA’s objectives by reinvesting in their communities. Applying CRA requirements to credit unions would impose redundant regulatory burdens, diverting resources from member services.
• Strategy:
  • Engage with legislators to demonstrate how credit unions already achieve CRA goals.
  • Collaborate with trade associations to strengthen opposition to CRA expansion.
  • Highlight instances where credit unions excel in community reinvestment without additional regulations.

Advocating for the Military Banking Program Improvement Act

• Significance: The Department of Defense’s (DoD) Military Banking Program has encountered challenges due to a lack of comprehensive understanding of banking practices and technologies. This has led to issues such as the controversial awarding of the Overseas Military Banking Program (OMBP) contract without ensuring basic deposit insurance.
• Strategy:
  • Support the passage of the Military Banking Program Improvement Act, which proposes creating an advisory committee including senior DoD officials, federal financial regulators, and representatives from organizations like DCUC and the Association of Military Banks of America (AMBA).
  • Conduct a baseline study to identify and address current program issues and develop strategies that leverage financial industry technologies for military bank and defense credit union customers.

Advancing Veterans Member Business Lending (MBL) Legislation

• Significance: Existing lending caps restrict credit unions’ ability to offer loans to veteran-owned small businesses. Removing these caps would enhance economic opportunities for veterans and enable credit unions to better serve their communities.
• Strategy:
  • Advocate for bipartisan legislation that exempts veterans’ business loans from the MBL cap.
  • Showcase success stories of veteran-owned businesses that have prospered with credit union support.
  • Build alliances with veterans’ organizations to bolster advocacy efforts.

Preserving ‘One Bank, One Credit Union’ Access on Military Bases

• Significance: Exclusive access to military installations ensures that service members receive financial services tailored to their unique needs. Losing this access could drive military families toward predatory lenders or high-cost financial institutions.
  
• Strategy:
  
  • Collaborate with the DoD to reinforce the importance of credit union access on bases.
    
  • Counter lobbying efforts from for-profit banks aiming to eliminate competition on installations.
    
  • Develop targeted campaigns to highlight the financial readiness support credit unions provide to military personnel.

Why Every Credit Unions Should Support DCUC’s Advocacy Efforts
DCUC is not just an advocate—it is the trusted partner for credit unions navigating an increasingly complex regulatory and legislative environment. By contributing to the DCUC National Advocacy Fund, credit unions can:

Defend Critical Issues: DCUC’s 2025 agenda addresses the most pressing threats to credit unions’ ability to serve their members. Amplify Collective Impact: Contributions pool resources, enabling DCUC to launch targeted, high-impact campaigns that individual credit unions could not achieve alone.
Support a Proven Leader: With decades of experience and a history of advocacy success, DCUC has the expertise and relationships necessary to deliver results.
Ensure Member Success: Every dollar invested in advocacy is a dollar invested in the future of credit unions and the members who depend on them.

Credit unions are stronger together. By trusting DCUC to lead the fight, we can protect our tax status, preserve an independent NCUA, prevent unnecessary regulation, and secure the future of the credit union movement. The stakes are high, but the opportunity to shape a better future is within our grasp. Let’s act boldly, decisively, and together.